A cost-benefit analysis of mechanical ventilation -: An examination of DRG 475

Objective: An economic evaluation of the resources used for mechanically ventilated patients using various measures for the benefits of extending life. Methods: Regression analysis is applied lo New York Slate discharge data for patients under DRG 475 during 1992-96 to predict age-specific survival rates and payments per life saved. Sensitivity analysis is used to compare benefits of extending life associated with different economic values of life with the payments per life saved at each age. Results: Payments per life saved decreased over time, primarily due to reduced reimbursements. Payments exceeded the age-adjusted and the quality-of-life and age-adjusted benefits for ail economic values of life at ages 90 and older. Conclusions: Since the benefits of extending life associated with DRG 475 exceed the payments per life saved at most ages, economic evaluations may be best applied with psychosocial evaluations to allocate resources more ethically.